Physhield Insurance Exchange Signs Agreement with Palumbo Insurance Associates to Sell Physhield's Medical Malpractice Insurance

MIAMI, April 8 /PRNewswire/ -- Physicians Healthcare Management Group, Inc. (Phyhealth) (Pink Sheets: PHYH) announced today that its exclusive affiliate, Physhield Insurance Exchange, a Risk Retention Group, has entered into a Managing General Agent ("MGA") Agreement with Palumbo Insurance Associates to sell Physhield's unique medical malpractice insurance program to physicians and other healthcare providers.

Palumbo Insurance Associates is a full service commercial insurance agency founded by Tony Palumbo, specializing in medical malpractice and other insurance products aimed at physicians.  Tony Palumbo brings more than ten years experience as President of Clements International, an international MGA and Underwriter, and another twenty years of executive management experience with The Maryland Insurance Group and Firemans Fund.  The company will manage the Physhield sales program out of its Bel Air, Maryland office.

Robert Trinka, Phyhealth's CEO and Physhield's president, stated, "Tony Palumbo will be an important partner in supporting the success of Physhield's marketing and sales initiatives. Tony and his organization bring unique relationships, product expertise and a wealth of professional insurance sales and executive experience.  In addition to proactively introducing Physhield to Palumbo's existing network of agents and brokers, Physhield also has a dedicated and prominent presence on the Palumbo Insurance website, which can be accessed at www.palumboinsuranceassociates.com.  We are also offering an educational 45 minute webinar through the site to illustrate the advantages of Physhield's insurance coverage and the value proposition for physicians."

Concerning the Physhield agreement, Palumbo commented, "Physhield is at the cutting edge of medical liability alternative risk transfer mechanisms.  We look forward to serving physicians and all medical professionals with new solutions to meet today's complex risk management challenges.  Physhield's unique approach to this market enables physicians to convert their traditional medical liability insurance expenses into a growing asset."

Palumbo further stated, "We will strategically take advantage of Physhield's nationwide potential by selectively rolling out the Physhield Insurance Exchange alternative on a state by state basis beginning with the Maryland and Washington, DC markets and expanding into those states that represent the right opportunity for Physhield's growth and development into a nationwide insurer.  As a federally authorized risk retention group, Physhield has the capability to reach physicians in any of the fifty states."

About Physhield:

Physhield Insurance Exchange, a Risk Retention Group is a reciprocal insurer that is owned by its physician subscribers. It is a federally authorized insurer domiciled in the state of Nevada. For more information go to www.physhield.com, e-mail Robert Trinka at [email protected] or call 305-779-1760.

About Physicians HealthCare Management Group, Inc.

Phyhealth develops and operates fully integrated healthcare organizations in partnership with physicians. Phyhealth Plans preserve the physician-patient relationship and deliver high-quality affordable healthcare within its selected communities. Phyhealth offers a turnkey, prepaid health plan solution to physicians for their Medicare and other patients who prefer to choose their own doctor and who make their own healthcare insurance purchasing decisions. Phyhealth Plans are unique in integrating all aspects of the delivery and financing of care, including providing medical liability insurance protection through Physhield Insurance Exchange, Phyhealth's exclusive risk retention group. The Phyhealth model empowers physicians to proactively manage their patient's general health and medical care and enhances physician financial rewards by increasing practice revenues, reducing expenses and restoring the economic value (equity) of their medical practices. Phyhealth Underwriters is the attorney-in-fact for Physhield and has a long-term agreement with Physhield to manage its operations.

About Palumbo Insurance Associates

Palumbo Insurance Associates offers a full range of insurance solutions for businesses, specializing in medical professionals. More information about Palumbo Insurance Associates is available at www.palumboinsuranceassociates.com, e-mail Tony Palumbo at [email protected] or call 410-836-8591.

Forward-Looking Statements

This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Physicians Healthcare Management Group, Inc., and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.

SOURCE Phyhealth